Source · Select Committees · Public Accounts Committee
Recommendation 19
19
The Department will still have a role to play in the PPE programme despite this...
Conclusion
The Department will still have a role to play in the PPE programme despite this transfer back of the logistics to SCCL. We sought to clarify where exactly accountability lies across the different aspects of the programme. For example, the Department confirmed that resolving the 176 contracts in dispute will remain its responsibility.58 It told us that its aim here is no longer to swap unusable PPE items for more appropriate items, but to concentrate on obtaining refunds wherever possible.59 Likewise, responsibility for decisions on how to dispose of excess stock will remain with the Department, though with the intention of handing that over to SCCL at a later date.60 We would expect further clarity on these 50 C&AG’s Report, The supply of personal protective equipment (PPE) during the COVID-19 pandemic, session 2019–2021, HC 961, 25 November 2020, para 1.4 51 C&AG’s Report, Investigation into the management of PPE contracts, session 2021–22, HC 1144, 30 March 2022, para 1.3 52 C&AG’s Report, Figure 4, para 2.18 53 Q94 54 Correspondence from Sir Chris Wormald, Permanent Secretary, Department of Health and Social Care, re Management of PPE Contracts, page 1, dated 19 May 2022 55 Q92 56 Correspondence from Sir Chris Wormald, Permanent Secretary, Department of Health and Social Care, re Management of PPE Contracts, page 1, dated 19 May 2022 57 Q92 58 Q92 59 Correspondence from Sir Chris Wormald, Permanent Secretary, Department of Health and Social Care, re Management of PPE Contracts, page 4, dated 19 May 2022 60 Q92 Management of PPE contracts 15 roles and responsibilities to be set out in the PPE strategy that we are now expecting this summer.61 The Department said that this is being worked on “in collaboration with SCCL and NHS Supply Chain”.62 Future of UK PPE manufacturing
Government Response
Not Addressed
HM Government
Not Addressed
3: PAC conclusion: The Department remains in dispute on 176 contracts for PPE with £2.7 billion of taxpayer money at risk and has made little progress in tackling potential fraudulent supplies of goods. 3a: PAC recommendation: The Department should explain in its Treasury Minute response to the Committee its progress in resolving these cases and provide as full an update as is possible on the status of those negotiations. 3.1 The government agrees with the Committee’s recommendation Target implementation date: August 2023 3.2 Much of this information is commercially sensitive and could impact the department’s ability to successfully pursue cases to completion. Therefore, the department will provide a summary update on the progress of negotiations as a whole in confidence to the Committee. 3.3 Through Treasury Minute 6 published in August 2022, the department already committed to providing regular updates on progress as part of the quarterly reporting cycle. The first update on progress was provided to the Committee in August as part of the Q4 report and included information about the amount that has been reclaimed against the ‘value at risk’. 3.4 The department has established a Dissolution Team to work through the contracts in dispute to maximise the value obtained from taxpayer’s money. The Dissolution Team has been commissioned until March 2023 with quarterly targets to achieve resolution of contractual matters.